Invest in Gold for Beginners
from the time of ancient civilizations
to the modern era gold has been the
world’s currency of choice today
investors buy gold mainly as a hedge
against political unrest and inflation
because of Gold’s low correlations with
other asset classes in addition many top
investment advisors recommend a
portfolio allocation in Commodities
including gold in order to lower overall
portfolio risk
there are many opportunities to invest
in gold including bullion mutual funds
Futures mining companies and Jewelry
with few exceptions only Boolean Futures
and a handful of specialty funds provide
a direct investment opportunity in gold
in this video I will explain how you can
invest in gold and if you are beginner
so you are at right place stay tuned and
watch the whole video
let’s start
gold bullion this is perhaps the best
known form of direct gold ownership
many people think of gold bullion as the
large gold bars held at Fort Knox
actually gold bullion is any form of
pure or nearly pure gold that has been
certified for its weight and Purity this
includes coins bars and other forms of
gold of any size a serial number is
commonly attached to gold bars as well
for security purposes
gold coins for decades large quantities
of gold coins have been issued by
Sovereign governments around the world
coins are commonly bought by investors
from private dealers at a premium of
about one percent to five percent above
their underlying gold value but in
recent years the premium has jumped to
around 10 in some cases
Golgi TFS and mutual funds one
alternative to a direct purchase of gold
bullion is to invest in one of the
gold-based exchange traded funds each
share of these specialized instruments
represents a fixed amount of gold such
as one tenth of an ounce
These funds may be purchased or sold
just like stocks in any brokerage or
individual retirement account this
method is therefore easier and more cost
effective than owning bars or coins
directly especially for small investors
as the minimum investment is only the
price of a single share of the ETF
the annual average expense ratios of
these funds are often around 0.57
percent
much less than the fees and expenses on
many other Investments including most
mutual funds
many mutual funds own gold bullion and
gold companies as part of their normal
portfolios but investors should be aware
that only a few mutual funds Focus
solely on gold investing most owned a
number of other commodities
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no individual company research needed
some funds invest in the indexes of
mining companies and others are tied
directly to gold prices
still others are actively managed read
their prospectuses for more information
traditional mutual funds tend to be
actively managed while ETS adhere to a
passive index tracking strategy and
therefore have lower expense ratios
for the average gold investor however
mutual funds and ETFs are now generally
the easiest and safest way to invest in
gold
Futures and options Futures are
contracts to buy or sell a given amount
of an item in this case gold on a
particular date in the future
‘s contracts are standardized and
represent a predetermined amount of gold
as this amount can be large Futures are
more suitable for experienced investors
people often use Futures because the
commissions are very low and the margin
requirements are much below traditional
Equity Investments
some contracts settle in dollars While
others settle in Gold so investors must
pay attention to the contract
specifications to avoid having to take
delivery of 100 ounces of gold on the
settlement date
options on Futures are an alternative to
buying a Futures Contract outright these
give the owner the option the right to
buy the Futures Contract within a
certain time frame at a present price
one benefit of an option is that it both
leverages your original investment and
limits losses from the price paid a
Futures Contract Bond margin can require
more Capital than originally invested if
losses Mount quickly
gold mining companies companies that
specialize in mining and refining will
also profit from a rising gold price
investing in these types of companies
can be an effective way to profit from
gold and can also carry lower risk than
other investment methods
gold jewelry about 49 of global gold
production is used to make jewelry
with the world’s population and wealth
growing annually demand for gold used in
jewelry production should increase over
time
on the other hand gold jewelry buyers
are shown to be somewhat price sensitive
buying less if the price Rises swiftly
buying fine jewelry at retail prices
involves a substantial markup up to 300
percent or more over the underlying
value of the gold
better jewelry Bargains may be found at
estate sales and auctions the advantage
of buying jewelry this way is that there
is no retail markup the disadvantage is
the time spent searching for valuable
pieces
nonetheless jewelry ownership provides
an enjoyable way to own gold even if it
is not the most profitable from an
investment standpoint as an art form
gold jewelry is beautiful as an
investment it is mediocre unless you are
the Jeweler gold as a diversifier given
Gold’s low correlation with other types
of investment assets investing in the
precious metal traditionally has been
considered as a hedge against economic
downturns in particular Gold’s
correlation with stock market
performance has historically remained
low and gold tends to move in the
opposite direction versus a dollar
this means that periods of dollar
weakness could spell strength for gold
prices
the potential benefits of gold is a
hedge against declines in other asset
classes may come to the Forefront of
investors Minds when facing the
likelihood of a recession based on
historical data gold prices generally
increase when inflation-adjusted bond
yields to climb
this suggests that there may be some
wisdom in allocating a portion of your
portfolio to gold as a cushion against
rough patches for economic growth
after gaining so much information I know
now you have some questions in your mind
like what is the best way to invest in
gold how do beginners invest in gold is
gold a good investment some worry I’m
here to answer these questions as well
so stay tuned into the video and if you
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now move on towards the topic
the best way to invest in gold
finding the most suitable gold
investment for your portfolio depends on
your resources and investment goals
larger investors looking for direct
exposure May opt to invest in gold
bullion but this involves paying a
premium in storage costs
ETFs is in mutual funds that track the
price of gold offer low-cost exposure
with low minimum Investments however
because funds vary in their investment
strategies and expense ratios it’s
important to do your research before
buying these shares investing in gold
mining companies can provide another
form of exposure to the metal but these
stocks don’t always track Gold’s
long-term performance very closely
finally buying jewelry can be a
satisfying way to own gold although it
is less likely to generate investment
profits how do beginners invest in gold
mutual funds and ETFs are generally the
easiest and safest ways to invest in
gold
each share of these Securities
represents a fixed amount of gold and
you can easily buy or sell these funds
in your brokerage or retirement account
mutual funds and ETFs are a good choice
for beginning investors because of their
low cost and low minimum investment
requirements
is gold a good investment during a
recession because gold historically has
shown a low correlation with other types
of investment assets many investors
include gold in their portfolios as a
buffer against potential economic
downturns gold prices generally increase
when bond yields decline
while there may be benefits to investing
in gold in a recessionary environment
its Effectiveness during a recession or
any other stage of the economic cycle
will depend on how it fits into your
overall investment strategy
the bottom line larger investors wishing
to have direct exposure to the price of
gold may prefer to invest in gold
directly through bullion there is also a
level of comfort found in owning a
physical asset instead of Simply a piece
of paper the downside is the slight
premium to the value of gold paid on the
initial purchase as well as the storage
costs
for investors who are a bit more
aggressive Futures and options will
certainly do the trick but buyer beware
these Investments are derivatives of
gold’s price and they can experience
sharp moves up and down especially when
done on margin on the other hand Futures
are probably the most efficient way to
invest in gold except for the fact that
contracts must be rolled over
periodically as they expire
the idea that jewelry is an investment
is storied but Nave there is too much of
a spread between the price of most
jewelry and its gold value for it to be
considered a true investment instead the
average gold investor should consider
gold oriented mutual funds and ETFs as
these Securities generally provide the
easiest and safest way to invest in gold
I hope now you understand how you can
invest in gold if you are a beginner as
well so that’s it for today and if you
will find my video valuable so don’t
forget to like And subscribe we will
meet again with another interesting
topic till then stay safe and stay happy
Are you looking to invest in gold but don’t know where to start? Investing in gold can be a great way of diversifying and safeguarding your wealth. But how do you go about getting started? Thankfully, we have the perfect video tutorial for anyone new to investing in gold! In this informative video, learn the basics of getting into investing gold so that you can get on your way towards financial security.